Tax Refund Direct Deposit Limits

In response to growing fraud and identify theft, the IRS has implemented new direct deposit limits.  Effective January 2015, the IRS will allow a maximum of three tax refunds electronically deposited into a single bank account.  Also, tax refunds will only be directly deposited into bank accounts that match the taxpayer’s name.

Subsequent refunds will automatically be converted to a paper check and mailed to the address on the tax return.  Should this occur, the IRS will also send a notice to the taxpayer informing them that the bank account has exceeded the direct deposit limit and they will receive a paper check in about four weeks.

The limit applies to bank and financial accounts including checking, savings, debit cards, and prepaid or reloadable cards.  It does not apply to those who utilize Refund Transfer programs.

Most taxpayers will not be impacted by this limitation.  Direct deposit continues to be the fastest and safest way to receive tax refunds.